Bitcoin miner Stronghold Digital Mining announced that it would be adding a total of 400 petahash per second (PH/s) capacity through 4,000 mining machines supplied by Cantaloupe Digital, a subsidiary of Canaan, a rig manufacturer. The miners will be installed in two tranches, one by mid-May and the second by mid-June. The mining machines, comprised of 2,000 A1246 and 2,000 A1346 miners, will be installed by Stronghold and will increase its mining capacity to 2.2 exahash per second (EH/s) since August, the CEO revealed.
The latest 4,000 mining machines have been largely purchased opportunistically in a distressed market or through unique hosting agreements where Stronghold retains exposure to Bitcoin mining economics and power upside, CEO Greg Beard said. This move comes at a crucial time when businesses have been feeling the pinch as bitcoin prices fall due to exorbitant energy costs.
As part of the two-year hosting agreement with Canaan, Stronghold is entitled to 50% of the Bitcoin mined and retains the upside of selling power back to the grid should it choose to curtail the usage of machines to do so.
Stronghold is one of the companies that has been able to fend off a similar fate to its peers, Compute North and Core Scientific, which filed for bankruptcy. Its most recent restructuring deal enabled the company to postpone payments on its $55 million debt until June 2024.
As of writing, SDIG shares were up around 3.8% on the day at $0.89. This latest development follows another announcement from Canaan, which noted that they experienced a 82% drop in revenue to $56.8 million in Q4 2022.
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Finance
Stronghold Digital to Add 400 PH/s Capacity Via 4K Bitcoin Miners From Canaan Subsidiary
Bitcoin miner Stronghold Digital Mining announced that it would be adding a total of 400 petahash per second (PH/s) capacity through 4,000 mining machines supplied by Cantaloupe Digital, a subsidiary of Canaan, a rig manufacturer. The miners will be installed in two tranches, one by mid-May and the second by mid-June. The mining machines, comprised of 2,000 A1246 and 2,000 A1346 miners, will be installed by Stronghold and will increase its mining capacity to 2.2 exahash per second (EH/s) since August, the CEO revealed.
The latest 4,000 mining machines have been largely purchased opportunistically in a distressed market or through unique hosting agreements where Stronghold retains exposure to Bitcoin mining economics and power upside, CEO Greg Beard said. This move comes at a crucial time when businesses have been feeling the pinch as bitcoin prices fall due to exorbitant energy costs.
As part of the two-year hosting agreement with Canaan, Stronghold is entitled to 50% of the Bitcoin mined and retains the upside of selling power back to the grid should it choose to curtail the usage of machines to do so.
Stronghold is one of the companies that has been able to fend off a similar fate to its peers, Compute North and Core Scientific, which filed for bankruptcy. Its most recent restructuring deal enabled the company to postpone payments on its $55 million debt until June 2024.
As of writing, SDIG shares were up around 3.8% on the day at $0.89. This latest development follows another announcement from Canaan, which noted that they experienced a 82% drop in revenue to $56.8 million in Q4 2022.
Stay updated with the latest news and trends on cryptocurrency, digital assets, and the future of money by subscribing to our platform.
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The material in this article is written on the basis of another article.